topic 9 knowledge economy & human resources development in malaysia 2

8/10/2019 Topic 9 Knowledge Economy & Human Resources Development in Malaysia 2

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All Rights ReservedCh. 1: #

Malaysian Economy Oxford Fajar Sdn. Bhd. (008974-T) 2011


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Chapter9

Knowledge Economy


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Learning Objectives

Explain the key characteristic of K-economy.

Explain Strategies by government toachieve a K-economy.

Explain the challenges faced by Malaysiain achieving K-economy.


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Introduction

Knowledge is replacing physical and naturalresources as the key ingredient in economicdevelopment.

A system of consumption and productionthat is based

on intellectual capital.

Education and human resource development (HRD)policies require rethinking.


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Introduction

What is K-economy?

An economy that is directly based on theproduction, distribution, and use of knowledge

and information The push for Vision 2020 requires high GDP

growth rates in the long run with knowledgeplaying a dominant role in driving productivity.


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Introduction

The knowledge economy commonly makes up a largeshare of all economic activity in developed countries.

A significant part of a company's valuemay consist ofintangible assets, such as the value of its workers'

knowledge (intellectual capital).

Developing countriestend to have manufacturing ormanufacturing and service-based economies, anddeveloped countries tend to have service-basedeconomies.


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Key characteristic of K-economy

1. Constant ly innovat ing

Continuous innovating and developing creativeproducts that are life transforming.

The knowledge inputis ever expandingintandem with technology and innovation. Doesnot deplete.

E.g. Japan losses less than 10 seconds per yearin train arrival.

South Korea has complex and efficient transportsystem.


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Introduction

E.g. Broad application of external knowledge.S.Korea cooperated with the WB, learning frominternational best practices. But also has a veryimportant side effect empowering ideasalready

emerging in the country. WB team actively supportedlocal experts in promoting innovative solutions togive boost to availability of high-speed internet.


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3. Col labo ration and compet it ion simul taneously.

Well connected to other global knowledge nodes.

Connectivity to the rest of the world. Technology

sharing & technology transformation will be madeeasy with the free flow of information with lowercost.

Reliable infrastructure encourage information and

technology sharing.


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3. Col labo rat ion and com peti t ion s imul taneously .

E.g. arrangement between PSA Peugeot Citronand Toyotato share components for a new city car

- simultaneously sold as the Peugeot 107, theToyota Aygo, and the Citron C1, wherecompanies save money on shared costs whileremaining fiercely competitive in other areas.

This known as coopetition. Telecommunication, Medicine, Space technology
http://en.wikipedia.org/wiki/Toyota_Aygohttp://en.wikipedia.org/wiki/Citro%C3%ABn_C1http://en.wikipedia.org/wiki/Citro%C3%ABn_C1http://en.wikipedia.org/wiki/Toyota_Aygo


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4. ICT Important

A pillars of the k-economy.

Firms exploit scientific & technical knowledge to

gain comparative advantage. ICT allows knowledge to be stored, sharedand

analyzed

Knowledge is not depletedthus adding to theimportance of ICT

The Internet is a key driver of ICT especially inthe development of E-based activities.


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5. Ethical values

Personnel at all level are knowledgeable aboutethical issues in innovation and creativity.

Knowledge is used to improve values.

This promotes innovation without infringementof intellectual property rights.



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Ch. 1: #Malaysian Economy Oxford Fajar Sdn. Bhd. (008974-T) 2011

6. A highly educated labour force.

The knowledge economy comprises a better-informed populaceas the government invests

more on human development. Workerscontribute to ideas, skillsand knowledgebyusing latest technology.

A high level of per capita wealth.

Knowledge-based investmentsgenerateincreasing returnsto scale and therefore, morewealth for all.



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7. Open cosmopo l itan so ciety

Attractive to global talent.

Opportunity for locals to tap foreign knowledge

and learn of best business practices A world-class infrastructurewill encourage

foreign investment.

The population is willing to accept and put intopractice new ideasand technologiesandhence, local companies will become fitandfully equipped to face global challenges.



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What strategies have been

laid down by government

1. The Multimedia Super Corridor (MSC)

This 50 x 15 km wide corridor stretches from thecenter of Kuala Lumpur to Cyberjaya, a newlyestablished city approximately 40 km south of

Kuala Lumpur,and is designed to incubate hightechnology companies.

Offers a massive corridor with a conduciveenvironment for local and internationalcompanies wanting to create, distribute, andemploy (deploy)IT and multimedia products andservices.


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The Multimedia Super Corridor (MSC).

MSC positions Malaysiaas a regional andinternational technology and telecommunicationhub.

The MSC will propel the transfer of technologyandbecome the test bed for R&D in high-techindustries.


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2. The Smart School program

Learning will be self-directed, individuallypaced, contextualized, and reflectiveusing ITas a prime enabler.

It is hoped that, eventually, all schools in thiscountry will be smart schools.


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3. National Information Technology Agenda (NITA)

The government formulate in 1996 to provide thecountry with the direction and the way forward inIT. The NITA addresses three-pronged strategy

aimed at developing a knowledge society through.

i. Buildingand developing the appropriate ITstructure.

ii. The creationand development of IT-basedapplications.

iii. Human development effort.


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4. Reforms in the education sector.

Planned reforms in the education sector include furtherprivatization, twinning arrangements with foreigninstitutions, and the construction of advanced technical

institutes and community colleges.

5. Favorable investment climate for local and foreignfirms.

A draft amendments to various financial regulationsaims to create a more favorable investment climate forlocal and foreign firms, particularly those in designatedhigh technology sectors


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1. The changing rules of competition.

The design-driven innovations is the new way to compete.

The firms are highly innovative.

Firms are able to produce goods and services that peoplewere actually waiting for.

So only firms that can innovate will able to survive: meetand surpass consumers needs.

The speed of innovation in developed countries is fasterthat the pace of innovation in the country.

Challenges faced by Malaysia to

build K-economy


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2. Domestic Challenges

i. Change in mindset

There is also the need to be able to change the mindsetof the people from thinking about production for the

old economy to that of producing for the new.

Requires an innovative and creative way of thinkingthat would lead to the production of innovativeproducts for the global market place.

We must build new processes, institutions andorganizations that are necessary for the Information AgeDr. Mahathir Mohammad said at the Second GlobalKnowledge Conference held in Kuala Lumpur 2007.


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2. Domestic challenges

ii. Creating awareness

A lot of Malaysians are still in the dark about what the

K-economy is all. The is need for the governmentto educate of the importance to the growth anddevelopment of Malaysia.


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3. Foreign competition

Malaysia must measure up and even surpassforeign competition in whichever niche area thecountry focuses on.

This will be a huge challenge for Malaysia to competewith advanced nations that have the advantages in:

1. Research and Technology

2. Talented and well educated workforce.

3. Abundant experience & culture to innovate.

4. Huge financial resource


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4. Infrastructure, Accessibility & Connectivity.

There must be affordable and equitable accessand connectivityto ensure that all levels of societycan participate in the new economy.

Businesses and citizens must have access to a low-cost, high-speed communication infrastructure.

In terms of accessibility to the IT infrastructure,

Malaysia performed better compared to otherdeveloping countries, but the situation reversedwhen compared with advanced countries.


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5. A pool of skilled labor

To develop a competitive edge in a knowledge-basedeconomy, Malaysia would need a highly skilledlabour force.

The short-term prospects of that happening arenot bright.

The only other alternative is to bring in the requisite

skilled labour from outside without upsetting thebalance of the multi-racial and multi-religious societythat Malaysia is.


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6. Piracy.

Piracy of CDs, VCDs, DVDs and software as well asdesigner goods, photocopying of entire books without

permission from the owners is commonplace. Efforts by the appropriate authorities to stop such

violations are underway but can be described asbandage measures.

There are laws on the books in most Asian countriesto punish copyright and patent violators but theirenforcement are sparse and fines are minimal and donot serve as a determent to violators.


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Ch. 1: #Malaysian Economy Oxford Fajar Sdn Bhd (008974 T) 2011

similar infringement may occur in developingcountries in violation of Malaysian-owned copyrightsor patents.

Malaysia may be blacklisted by developed countriesand seek trade sanctions to be applied on exportsfrom Malaysia unless such violation cease.


build K-economy

topic 9 knowledge economy & human resources development in malaysia 2

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